Gocompare.com could double profit in 2010

Price comparison site Gocompare.com is on track to more than double profits in 2010 after posting an after-tax profit of £12m for 2009, according to CEO Hayley Parsons.

The 2009 profit follows a $4m loss in 2008. The company said the improved result was based on a 53% increase in annual turnover from £49m in 2008 to £74.9m in 2009 and an uplift in consumer response from increased brand awareness.

The company also reported that it has fully repaid its £30million loan facility agreed early in 2007 with insurance company esure used to fund its marketing. Gocompare.com generates revenues from relationships with over 150 insurance brands.

“Following our launch in November 2006, initial losses stemmed from focused investment in our infrastructure and marketing for the Gocompare.com brand,” Parsons said in a statement. “We entered a pre-softened market with a clear focus on firm cost control, revenue per head, scalable infrastructure and marketing that focuses on maximising response as well as brand recall. These results and our current position speak volumes for the effectiveness of that strategy.”

She added: “We invested heavily again last year to tap into clear growth potential within a hardening insurance market of time-pressed consumers who are embracing price comparison as the most convenient and transparent method of insurance shopping. Our ability to fulfil their needs and those of the insurers keen to reach them has paid extraordinary dividends.”

Gocompare.com’s insurance quote volumes increased to 19.4m from 12.3m in 2008. Today, the company is issuing in excess of two million quotes for car, home, pet, van and motorbike insurance each month and foresees this level continuing to increase over the coming years.